Fitch affirms Lafarge

Fitch Ratings said it affirmed Lafarge SA's long-term issuer default and senior unsecured ratings at BBB and has changed the outlook for the long-term issuer default rating to stable from positive, following the company's announcement that it will acquire Orascom Construction Industries Cement Group for a consideration of €8.8 billion.

Fitch said it has also affirmed Lafarge's short-term issuer default rating at F2.

Fitch noted that it considers that this acquisition is in line with Lafarge's strategy to increase its presence in emerging markets, adding that the company expects EBITDA contribution from these markets to progressively increase to 65% in 2010 from 45% in 2007.

Lafarge's ratings continue to reflect its solid position in the international building materials industry, notably a leading global position in both the high-margin cement sector and its complementary product portfolio, the agency said.

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